The Directors have the pleasure of presenting the Thirty-fourth Annual
 Report of your Company for the Financial Year 2007-08 together with the
 Audited Accounts, Auditors Report and Comments of the Comptroller &
 Auditor General of India for the year ended 31st March 2008.
 
 FINANCIAL RESULTS & HIGHLIGHTS
 
 The summary of operating results for the year 2007-08 and appropriation
 of divisible profits is given below:
 
                                                     (Rs. in crore)
 Particulars                               2007-08         2006-07
 
 TURNOVER                                    6,645           6,426 
 
 PROFIT
 
 Profit/(Loss) before Depreciation,
 Interest & Tax (PBDIT)                        489             378
 
 Interest payment                               10              12
 
 Depreciation, amortisation & write off         31              36
 
 Impairment of assets                            -              55
 
 Profit/(Loss) after Depreciation &
 Interest (PBT)                                448             275
 
 Provision for Tax                             145             127
 
 Deferred Tax Adjustment                         8             (38)
 
 Fringe Benefit Tax                              1               1
 
 Profit/(Loss) after Tax                       294             185
 
 APPROPRIATIONS
 
 Provisions for Dividend including
 Dividend Tax                                  117              82
 
 Transfer to General Reserves                  177             103
 
 - Highest ever turnover of Rs.6,645 crore was achieved during the year
 2007-08, registering a growth of 3% over the previous year.
 
 - Net profit increased by 59% over previous year.
 
 - Dividend of 50% has been recommended by the Board for the year
 2007-08 (Dividend was 35% for the previous year).
 
 HIGHLIGHTS OF PHYSICAL PERFORMANCE
 
 - Crude throughput for the year 2007-08 was 2,019.7 TMT (1,542.4 TMT of
 Ravva Crude Oil, 400.2 TMT of Assam Crude Oil & 77.1 TMT of Imported
 Crude Oil) against MoU target of 2,000 TMT, which corresponds to the
 capacity utilization of 85.9%.
 
 - Distillate yield of 86.1% achieved during the year is the highest
 ever achieved (Previous highest was 86.0% in the year 2006-07).
 
 - The yield of LPG at 2.36% on crude throughput is the highest ever
 achieved, the previous best being 2.32% achieved during the year
 2006-07.
 
 - The Fuel & Loss was 5.29% on crude which is the lowest ever achieved,
 the previous best being 5.40% achieved during the year 2006-07.
 
 - The hydrocarbon loss was 0.20% on crude, which is the lowest ever
 achieved, the previous best being 0.23% achieved during the year
 2006-07.
 
 - MBN for the year at 90.4 is the lowest ever achieved, the previous
 best being 91.1 achieved during the year 2006-07.
 
 - Highest ever LTA free period of 2,228 days (24.5 million manhours)
 has been achieved as on 31.03.2008. (Previous best LTA free period was
 6.4 million man hours). There has been no LTA since 24.02.2002.
 
 PHYSICAL PERFORMANCE
 
 REFINERY
 
 Crude Throughput
 
 The crude throughput during the year 2007-08 was 2,019.7 TMT.  Crude
 throughput was marginally lower than previous year due to lower crude
 availability.
 
 The Annual plan target, actual crude receipts and crude throughput for
 the year 2007-08 and 2006-07 are given below:
 
                                                (Figures in TMT)
 Crude Receipts                           2007-08      2006-07
 & Throughput
 
 (a)  Crude throughput target (OEB)
 Assam Crude                                500.0        750.0
 
 Imported Crude                               -            -
 
 Rawa Crude                               1,500.0      1.500.0
 
 Total                                    2,000.0      2,250.0
 
 (b)  Actual Crude Receipt
 
 Assam Crude                                398.3        503.6
 
 Imported Crude                              99.9          -
 
 Rawa Crude                               1,536.8      1,541.2
 
 Total                                    2,035.0      2,044.8
 
 (c)  Actual Crude throughput
 
 Assam Crude                                400.2        505.8
 
 Imported Crude                              77.1          - 
 
 Rawa Crude                               1,542.4      1,561.5
 
 Total                                    2,019.7      2,067.3
 
 (d) % Capacity utilization                  85.9         88.0
 
 Processing of Imported Crude oil
 
 With a view to improve the corporate profitability of your Company as
 well as other refineries of IndianOil group Companies located in North
 East, your Company has processed 77.1 TMT of low sulphur imported crude
 during the year 2007-08. Equivalent quantity of Assam crude oil was
 surrendered to Guwahati & Digboi refineries for increase in their
 capacity utilisation. The differential cost between imported crude and
 Assam crude is compensated by IndianOil to BRPL.
 
 Petrochemicals and Polyester Staple Fibre (PSF)
 
 DMT and PSF plants are under shutdown since November, 2005 on account
 of economic reasons. The Reformer unit of the Xylenes Plant is being
 operated on MS mode to produce Motor Spirit. Your Company is getting
 the excise duty benefit of 50% on MS, besides the benefit of higher
 price of MS in comparison to Naphtha.
 
 Operation of LPG Bottling Plant
 
 The LPG Bottling Plant of your Company, which is located inside the
 Companys plant premises, is being operated by IndianOil under an
 operational Agreement. Your Company is getting a fixed fee from
 IndianOil for operation of the LPG Bottling Plant beside reimbursement
 for power, water etc being supplied to the LPG Bottling Plant. LPG
 produced is being marketed by IndianOil and a major portion of this is
 being utilized as feedstock at the Companys LPG Bottling Plant.
 
 Out of the total LPG despatch of 47.5 TMT during the year 2007-08 (48.1
 TMT during the year 2006-07), packed LPG despatch was 33.9 TMT (39.0
 TMT during the year 2006-07).
 
 Needle Coke Production
 
 Your Company in collaboration with IndianOil (R&D) has been producing
 Needle Coke in DCU / CCU plant using suitable feedstock. Calcined
 Needle Coke is an import substitute product and your Company is the
 only producer in the country. During the year 2007-08, your Company has
 produced 11.6 TMT of Green Needle Coke.
 
 MARKETING
 
 Petroleum Products
 
 IndianOil continues to market petroleum products of your Company except
 Raw Petroleum Coke (RPC), Calcined Petroleum Coke (CPC) and Needle
 Coke. The details of sale of RPC, CPC and Needle Coke during 2007-08
 and 2006-07 are given below:
 
                                        (Figures in TMT)
 Products                      2007-08     2006-07
 
 Raw Petroleum Coke              100.0        87.6
 
 Calcined Petroleum Coke           0.8         0.9
 
 Raw Needle Coke                   5.5          -           
 
 Needle Coke                       3.4         2.5
 
 Petrochemicals and PSF
 
 There was no sale of PSF and DMT in your Company during the year
 2007-08 as PSF and DMT plants remained shutdown since November, 2005
 due to economic reason. Details of sale of other petrochemical products
 during 2007-08 and 2006-07 are given below:
 
                                        (Figures in TMT)
 Products                      2007-08     2006-07
 
 Petrosol                          7.2         4.2
 
 Bonmex                            1.7         2.4
 
 Customer satisfaction and redressal mechanism/system:
 
 Customers feedbacks are taken on regular basis by contacting them in
 order to have the Companys benchmarking on customer satisfaction.
 Customer satisfaction levels are evaluated on the basis of feedback
 received from them. Rating analysis is done on half yearly basis and
 the same is reviewed by the management.
 
 Your Company gives top most priority in customer complaints and redress
 them in a transparent and fair manner.
 
 FINANCIAL PERFORMANCE
 
 Profitability
 
 During the year 2007-08 your Company earned a net profit of Rs. 294
 crore against Rs.185 crore during the previous year.  The profit before
 tax is Rs. 448 crore during the year 2007-08 (Rs. 275 crore during the
 previous year). The total gross income of Rs.6,645 crore during the
 year 2007-08 (Rs. 6,426 crore during the previous year) includes excise
 duty benefit of Rs.537 crore (Rs. 570 crore during the previous year).
 
 Dividend
 
 The Board of Directors of your Company has recommended a dividend of
 Rs. 5 (five) per share (50%) for the year 2007-08 (35 % during the
 previous year).
 
 Transfer to General Reserves
 
 The Board of Directors has proposed to transfer the entire remaining
 balance of the Profit & Loss Account of 2007-08 amounting to Rs. 177
 crore, after appropriation for dividend & dividend tax, to General
 Reserves.
 
 Share value
 
 The highest and lowest prices of your Companys shares during the year
 2007-08 were Rs. 116.90 and Rs. 39,00 respectively against Rs.79.50 and
 Rs. 39.00 in the previous year.
 
 The details of Book Value & Earning per share are:
 
                                          (Figures in Rupee)
 Particulars                       As on           As on
                              31.03.2008      31.03.2007
 
 Book value                        57.66           48.78
 
 Market value (closing price)      48.95           40.85
 
 Earning Per Share                 14.73            9.26
 
 Market capitalisation as on 31st March, 2008 stands at Rs. 978 crore
 compared to Rs. 816 crore as on 31st March, 2007.
 
 PROJECTS
 
 On going projects
 
 The following three projects are presently under implementation:
 
 Diesel Hydrotreatment (DHDT) Project: Euro - III / IV quality
 specification of Diesel fuel will be applicable from April 2010 as per
 Auto Fuel Policy of the Government. To meet the required
 specifications, your Company is implementing the Diesel Hydrotreatment
 (DHDT) project at revised estimated cost of Rs. 1,646.39 crore
 (original estimated cost was Rs.1,431.91 crore).
 
 The project has achieved 52.68 % progress as of 15th May, 2008 and is
 scheduled for completion by October 2009. Majority of equipments and
 works have been ordered. Delivery of equipments has started and site
 works are in progress.
 
 MS Maximization Project: This is a value addition project.  The project
 will reduce production of demand limited naphtha and increase the
 production of high value Motor Spirit. The project involves revamp of
 the existing plant at an estimated cost of Rs 44.56 crore.
 
 The project has achieved 61.1 % progress as of 15th May, 2008 and is
 scheduled for completion by August 2008. Ordered equipments are
 arriving at site and site works have commenced.
 
 MS Quality Improvement Project (MSQ): This project will help your
 Company to achieve the Euro - III quality specification of Motor Spirit
 which will become applicable from April 2010 as per Auto Fuel Policy of
 the Government. This will also reduce demand limited naphtha from the
 refinery product pool.
 
 The feedstocks for the MSQ Project are Straight Run Naphtha (SRN) from
 Crude Distillation Units, C5 Reformate from the Catalytic Reformer Unit
 and Coker Naphtha from the Delayed Coker Units.
 
 The MSQ project consists of two units, viz. Feed Preparation Unit (FPU)
 and Light Naphtha Isomerisation unit comprising of a Reaction section,
 a Purification section and an LPG Recovery section.
 
 The existing idle Fractionation unit, Isomerisation unit and equipment
 from the idle Parex unit of Xylenes plant will be utilized in the MSQ
 project.
 
 The technology to be used for this project is indigenous. It is jointly
 developed by IndianOil (R&D) and Engineers India Limited.
 
 Environmental Clearance for the project from the Ministry of
 Environment & Forests and No Objection Certificate (NOC) from Assam
 State Pollution Control Board have been obtained.
 
 This Project has been approved for implementation by the Board of
 Directors of your Company on 25th April 2008. The estimated cost of
 this project is Rs. 293.6 crore inclusive of foreign exchange component
 of Rs. 39.3 crore. The Project is scheduled for completion by March,
 2010.
 
 Projects under consideration
 
 In addition to the above, your Company has initiated steps for
 implementation of INDMAX project.
 
 This project will help your Company to eliminate the demand limited
 black oil products (LDO, LVFO & FO) and help in converting them to high
 value lighter products viz. LPG & MS.
 
 The project would comprise of the following:
 
 (i) Indmax Unit including Sour Water Stripping and Amine Absorption
 Section, LPG Treatment facilities to treat LPG from the Indmax Unit
 Basic Engineering Design Package for the Indmax Unit has been made by
 M/s. Lummus Technology Inc.
 
 (ii) Indmax Gasoline De-Sulphurisation facility to treat Indmax
 Gasoline in order to meet Euro-lll/IV specs of MS pool Basic
 Engineering Design Package for the Indmax Gasoline De-sulphurisation
 unit is under preparation by M/s. Axens.
 
 RESEARCH AND DEVELOPMENT
 
 The R&D activities in your Company are primarily concentrated towards
 product quality upgradation in collaboration with the R&D Centre of the
 holding company IndianOil. Specific areas in which R&D was carried out
 have been described in detail in Annexure I under Technology
 Absorption.
 
 ENERGY CONSERVATION
 
 Your Company continued its efforts on Energy Conservation through
 continuous monitoring & control of operational activities and
 implementing new energy conservation schemes. The details of the
 various energy conservation schemes are given in Annexure -1 to the
 Directors report.
 
 Your Company has been awarded the Oil & Gas Conservation Award-2007
 (First Prize) in the area of steam leaks amongst all the 17 refineries
 of the country.
 
 SAFETY
 
 Your Company is giving maximum attention for the safety of employees,
 equipment and materials.
 
 Your Company has undertaken number of drives for enhancing the safety
 awareness among the employees of the Company and the contractors.
 Safety trainings were given to 4,529 contract workers, 280 contract
 supervisors & 78 drivers and training certificates were issued to them.
 
 District Administration, Chirang conducted Offsite Disaster Mock Drill
 for your Company in December 2007 in which District Level State
 Government officials took part. Central Government agencies such as
 Indian Railways, BSNL, CRPF and Civil Defence etc. were also present.
 
 In addition to above, quarterly Onsite Disaster Mock Drills were also
 conducted to check & review the preparedness of employees for handling
 the emergencies under simulated condition. Deficiencies observed during
 these mock drills are already taken care of.
 
 As a preventive measure your Company is encouraging the employees to
 identify and report Near Miss incidents and in this direction your
 Company has introduced a few award schemes. Similarly safety
 recognition scheme for contractors has also been introduced to develop
 the safety awareness among the contractors in order to motivate them to
 conclude the contracts without any incidents and accidents.
 
 As a result of the continuous efforts, your Company could achieve the
 distinction of having no lost time accident since 24.02.2002 and
 achieved continuous 2,228 days (24.5 million man-hours) without any
 lost time accident as on 31.03.2008.
 
 - Prasansa Patra as Safety award-2006 from National Safety Council of
 India.
 
 - Greentech Safety Gold Award-2008 for outstanding performance in
 safety.
 
 HEALTH
 
 Health check-up programme for all employees was drawn at the beginning
 of the year and monitored closely for their good health and detecting
 any occupational disease.
 
 ENVIRONMENT
 
 Your Company is giving highest priority and attention for environmental
 protection and conservation of natural resources and is committed for
 continual improvement in its environmental performance. Your Company
 has a well-established Environmental Management System (EMS). It is an
 ISO-14001, 2004 certified Company for its Environment Management
 System.
 
 A clean environment at work place and surroundings is your Companys
 main focus area. For this, constant monitoring of environmental
 parameters of plant effluent, emission and habitation area is being
 carried out to ensure that ambient air emission and quality of treated
 effluent is well within the limits specified by the statutory bodies.
 
 Your Company has not received any complaints relating to environmental
 issues either from the public or from any statutory agencies.
 
 The waste generated from the complex is disposed in accordance with the
 Hazardous Waste (Management & Handling) Rules, 1989 as amended.
 
 Your Company reuses treated effluent after tertiary treatment for
 cooling tower water makeup and as fire fighting water inside the
 complex as well as project construction site water. Sewage of your
 Companys township is also treated along with plant effluent in the
 effluent treatment plants. Your Company has achieved a rare distinction
 of near zero discharge status through its efficient effluent
 management. More than 95% of the treated effluent water generated in
 the entire complex is reused in the plants and rest 5% of treated
 effluent is utilized for gardening purpose. Due to reuse of treated
 effluent, your Company could significantly reduce the ground water
 consumption, achieving virtually zero discharge in the non-monsoon
 period.
 
 Under the Leak Detection and Repair programme (LDAR), your Company
 conducted quarterly Fugitive Emission Survey with GMl leak surveyor
 (Instrument). During the year 2007-08, your Company could not only
 avoid potential loss of 138 MTA (approx.) of light Hydrocarbon to the
 atmosphere through fugitive sources but also able to keep healthy work
 environment in the plant complex. (Potential saving of 138 MTA of
 Hydrocarbon, equivalent to Rs. 41 lakh per annum approx.).
 
 To ensure work area quality and health of equipments, quarterly noise
 surveys were conducted covering all the operating plants, control rooms
 and ambient surrounding the plant complex.
 
 Training programme of environment management and environmental
 awareness are conducted at regular intervals for employees.
 
 During the year a natural pond of 15,000 m3 capacity within the complex
 was rejuvenated for rain water harvesting. This pond is fed with
 natural rainfall as well as roof top water from the nearby building.
 The area surrounding the pond has been developed as a garden and named
 as Parivesh Udyan.
 
 As a proactive approach for Rainwater Harvesting, your Company has
 implemented two roof top Rainwater Harvesting projects by construction
 of recharge pits and recharge trench.
 
 For maintaining transparency among masses, LED Displays for
 indicating Treated Effluent Quality, Stack emission data for all the
 furnace stacks and ambient air quality data have been installed at
 the main gate of the plant complex. These data are displayed on real
 time basis.
 
 Your Company has received Greentech Environment Excellence Gold Award,
 2007 in Petroleum Refinery Sector for its outstanding achievement in
 Environment Management.
 
 ISO CERTIFIED MANAGEMENT SYSTEM
 
 The Company is effectively maintaining the integrated Safety, Health
 and Environment Management System conforming to the International
 standards ISO 14001:2004 and OHSAS 18001:1999 apart from continuing the
 International Quality Management System conforming to ISO 9001:2000.
 All the three certificates have been awarded by M/s DNV and the system
 compliance is being verified by M/s DNV periodically.
 
 TPM IMPLEMENTATION
 
 Your Company has implemented Total Productive Maintenance (TPM) in its
 plants. TPM is also under implementation in office areas. After
 implementation of TPM, appearance of the plants & office premises and
 performance of equipments & units as a whole has improved to a large
 extent.
 
 VENDOR DEVELOPMENT
 
 With a view to have the advantage of greater competition from larger
 vendor base as well as to bring more transparency in the tendering
 process, your Company has started the process of continuous vendor
 registration through its website www.brplindia.com.
 
 All open and limited tenders issued by the Company, except tenders of
 minor values, are being uploaded into the website of the Company for
 easy access of the vendors and contractors.  Details of major orders
 issued are also uploaded into the website of the Company for general
 information of all concerned including prospective vendors.
 
 RISK MANAGEMENT
 
 Your Company has formulated a frame work for risk management and
 procedures for informing Board members about the risk assessment and
 minimization procedures. Under this framework a Risk Management Group
 has been constituted and few Risk Officers have been designated in
 identified areas for effective Risk Management.
 
 Your Company is constantly assessing the risks that are being faced by
 the Company and is taking required measures for minimisation of such
 risks and the same is being reviewed by the Board of Directors at
 periodical intervals.
 
 New projects are implemented after proper evaluation and taking into
 consideration the future perspectives with a view to minimise the
 adverse impact of unforeseen risk. Detailed Feasibility Reports of all
 major projects are being prepared through reputed consultant.
 
 HUMAN RESOURCE MANAGEMENT
 
 Manpower strength
 
 The manpower of your Company as on 31st March, 2008 was 1676 (546
 executives and 1130 workmen).
 
 Welfare of Weaker Sections
 
 Your Company strictly follows the Presidential Directives / Government
 guidelines with respect to direct recruitment and promotion of
 Scheduled Caste (SC) & Schedule Tribes (ST) and in direct recruitment
 of Other Backward Class (OBC), Persons with Disabilities (PWD) and
 Ex-Service Men (ESM).
 
 Statements showing the representation level of SCs, STs and OBCs in
 each Group, the number of vacancies filled by the members of SCs, STs
 and OBCs during the year 2007-08 in direct recruitment and promotion
 are enclosed as Annexure-lll and Annexure-IV respectively.
 
 Gender issue-gender budgeting
 
 As on 31st March, 2008 there were 78 women employees in your Company,
 constituting about 4.65% of its total employee strength. Your Company
 has constituted a Gender Budgeting Cell to initiate proposals for
 gender related activities.
 
 In order to spread gender sensitive awareness a separate budget
 provision has been created, assigning therein gender related activities
 focused towards empowerment of women, skill development, counselling,
 health awareness programmes for women in the township as well as the
 nearby village areas.  Your Company also provides assistance to the
 Womens Cell & Ladies Association for developmental and
 socio-cultural activities.
 
 Industrial relations
 
 The overall Industrial Relations climate in your Company continued to
 remain peaceful, harmonious and cordial during the year 2007-08 and no
 plant interruption was caused due to any industrial issues. This was
 possible due to the proactive human resource management practices
 adopted by your Company as well as the support received from the
 collectives.  This is a manifestation of the understanding and trust
 that exists between the Management and Collectives. Further, the
 unrecognised union of your Company has merged with the recognized
 union. This shift towards a single union shows the existence of a
 healthy industrial relation regime in your Company.
 
 Employees welfare
 
 Your Company continued in its endeavour to improve employees welfare
 benefit programmes. The recreational facilities have been maintained
 and the educational facilities strengthened.
 
 Training
 
 Your Company is giving stress on continuous development of its human
 capital and in that regard using training as one of the important
 tools. Based on organizational and individual needs, employees are
 imparted training in skill improvement, competency building,
 attitudinal change etc., to improve the functional efficiency of the
 organization.
 
 Your Company achieved an average of 3.99 training mandays per employee
 during the year 2007-08. 6 employees undertook overseas assignment
 through Petroleum India International (Pit).
 
 At the time of nominating employees for external programme, care was
 taken to ensure appropriate representation of SC/ST and women
 employees.
 
 Use of Hindi
 
 Your Company is fully committed on implementation of Official Language
 in accordance with the policy and directives of the Govt, of India. To
 achieve this goal, training of employees under various Hindi teaching
 schemes of the Ministry of Home Affairs was continued. For creating a
 congenial atmosphere to motivate employees for working in Hindi, policy
 of encouragement and incentive was adopted.
 
 Your Company is sending its employees to the Hindi Computer Training
 programme sponsored by the Official Language Department, Ministry of
 Home Affairs to acquire proficiency in word processing in windows
 environment.
 
 Workshops on Official Language policy & rules of the Government were
 organized for the senior functionaries and Official Language
 Co-ordinators of the Company & for the heads of the member Offices of
 the Town Official Language Implementation Committee, Bongaigaon. 
 
 Dedicated to the cause of spread and propagation of the Official
 Language, your Company continued to manage and regulate the activities
 of Town Official Language Implementation Committee, Bongaigaon
 including its publications.
 
 In recognition to your Companys untiring efforts, Govt, of India,
 Ministry of Home Affairs, Official Language Department honoured the
 Town Official Language Implementation Committee, Bongaigaon with
 Rajbhasha Award for its performance in the field of Official Language
 implementation during the year under review.
 
 To promote Hindi right from the micro-level, your Company continued its
 cash award scheme to the students securing highest and second highest
 marks in Hindi subject of class X Examination of CBSE at the District
 Level.
 
 Sports
 
 Your Company is consistently striving for promoting sports amongst the
 employees & their children and the populace of the neighbouring areas
 by organizing various tournaments, competitions, coaching programme and
 recreational activities throughout the year.
 
 Your Companys team participated in all major PSPB Tournaments viz.
 Chess, Carrom, Bridge, Table Tennis, Volleyball, Badminton and
 Athletics. Your Company bagged three Gold Medals in 100M, 200M and Long
 Jump in the last XXVIII PSPB Inter Unit Athletics meet 2007-08.
 
 During the year 2007-08, your Company had also hosted XIX PSPB Inter
 Unit Basketball Tournament.
 
 CORPORATE SOCIAL RESPONSIBILITY (CSR)
 
 With an aim to contribute towards upliftment of the quality of life of
 the society in and around its operational areas, predominantly
 inhabited by SC and ST communities, and to maintain good community
 relations, your Company has undertaken various welfare schemes under
 the Special Component Plan (SCP) and Tribal Sub-Plan (TSP). These
 include:
 
 - An auditorium cum library building, constructed with the financial
 assistance of the Company, has been handed over to Dhaligaon High
 School Authority.
 
 - Financial assistance for installation of RCC ring wells in
 neighbouring schools and villages.
 
 - Free medical services in Rural Health Centre to nearby localities.
 Free medical health check up camps in the rural areas. A vehicle was
 donated to Bongaigaon Municipality for community services.
 
 - Awarding of scholarships to SC/ST students pursuing studies in
 Engineering, Medical, MBA and Post Matric in neighbouring schools.
 
 - Financial assistance for construction/renovation of gulley control
 projects/minor irrigation dams for irrigation.
 
 - Financial assistance to women self help groups / societies for
 construction of buildings & imparting training on self employment and
 income generation.
 
 - Conducting coaching camps, sponsoring various sports tournaments and
 distribution of sports items to schools and clubs.
 
 - The Company has contributed an amount of Rs. 10 lakh to Assam Chief
 Ministers Relief Fund.
 
 During the year 2007-08 your Company has spent an amount of Rs. 1.31
 crore on CSR activities against Rs. 1.24 crore during the previous
 year.
 
 MEMORANDUM OF UNDERSTANDING (MOU)
 
 Your Company has signed Memorandum of Understanding with IndianOil
 (holding company) for the year 2008-09 on 19th March, 2008.
 
 Based on the crude availability projections, the total crude throughput
 for the Company has been considered at 2.00 million metric tonnes for
 the purpose of MOU 2008-09.
 
 Your Company has been performing consistently well under the MOU system
 of evaluation. The overall performance of your Company has already been
 rated as excellent by IndianOil for the year 2006-07. Your Company
 expects to achieve excellent rating for the current year also i.e.
 2007-08. Your Company is getting continuous Excellent MoU rating
 since 2002-03.
 
 INTERNAL AUDIT
 
 The function of Internal Audit in the Company is vested with an
 in-house Internal Audit Department staffed with professional and
 experienced personnel.
 
 VIGILANCE
 
 Your Company has a full-fledged Vigilance Department. Stress is given
 on inculcating vigilance consciousness and creating greater awareness
 among the employees for following the laid down systems and procedures
 as well as maintaining an environment of transparency within the
 organization through interactions at different levels. As a part of
 preventive vigilance, periodic and surprise inspections were carried
 out in selected areas of operations.
 
 Vigilance Awareness Week was observed during November 2007. As a part
 of the Vigilance Awareness Week, workshop was organized with the
 participation of contractors / vendors.
 
 CORPORATE GOVERNANCE
 
 Your Company recognises the inalienable rights of the shareholders as
 true owners of this Company and the role of the management as trustees
 on behalf of the shareholders.  Your Company believes that good
 Corporate Governance is essential for enhancing stakeholders trust and
 confidence and consistent efforts are being made for enhancing long
 term shareholders value. Your Company is committed to values and
 ethical conduct of business in a transparent manner. Your Company also
 believes in communicating to stakeholders in a truthful and transparent
 manner about the operation and performance of the Company. As a part of
 this endeavour, the Company has complied with all the mandatory
 provisions of the Corporate Governance as specified from time to time
 in clause 49 of the listing agreement. Your Company is also complying
 with the Guidelines on Corporate Governance, issued by the Department
 of Public Enterprises, Government of India during 2007-08 for Central
 Public Sector Enterprises, which has been duly certified.
 
 A separate report on Corporate Governance is annexed as Annexure- VI to
 this report. The Management Discussion and Analysis giving a detailed
 analysis of performance for the year, industry scenario, opportunities
 & threats, risk and concerns, future outlook, etc is attached to this
 report as Annexure- V.
 
 The certificate of the Statutory Auditors regarding compliance of
 conditions of Corporate Governance as stipulated in clause 49 of the
 listing agreement is annexed as Annexure-VII.
 
 COMPLIANCE OF PROVISIONS OF THE RIGHT TO INFORMATION ACT, 2005
 
 Being a public authority as defined under Section 2, sub section (h)
 (i) of the Act, your Company has complied with the provisions of the
 Right to Information Act, 2005.
 
 As required, your Company has appointed Public Information Officers and
 Appellate Authority, information in regard to which is available in the
 Companys website www.brplindia.com.
 
 DIRECTORS
 
 Shri V P Joy and Prof. Sougata Ray vacated the office of Directors with
 effect from 7th August, 2007 and 7th March, 2008 respectively
 consequent upon their resignation from the Board.  Directors of your
 Company place on record its appreciation for the excellent contribution
 made by Shri V P Joy as a Director of the Company and by Prof. Sougata
 Ray as Director as well as the Chairman of the Audit Committee during
 their association with the Company.
 
 Shri P C Sharma, Shri P K Goyal and Shri G Bhanumurthy will retire by
 rotation at the 34th Annual General Meeting and being eligible offer
 themselves for re-appointment as Directors at the said meeting.
 Necessary resolutions in this regard have been incorporated in the
 notice for the 34th Annual General Meeting.
 
 There is no inter-se relationship among Directors. However, Shri S
 Behuria and Shri B M Bansal are the Chairman (Executive Chairman) and
 Director (P&BD) respectively of the holding Company IndianOil and Shri
 P K Goyal and Shri G Bhanumurthy are Executive Director (Finance)
 (below Board level) and Executive Director (Guwahati Refinery) (below
 Board level) respectively of the holding Company IndianOil.
 
 STATUTORY INFORMATION
 
 Energy Conservation, Technology Absorption and Foreign Exchange
 Earnings and outgo
 
 Information required under Section 217, sub-section (1), clause (e) of
 the Companies Act, 1956, read with the Companies [Disclosure of
 particulars in the Report of the Board of Directors] Rules, 1988 is
 attached as Annexure-I and forms an integral part of this Report.
 
 Particulars of Employees
 
 Statutory statement of particulars of employees under Section 217,
 sub-section (2A) of the Companies Act, 1956 read with the Companies
 [Particulars of Employees Rules], 1975, as amended, is attached as
 Annexure-ll and forms an integral part of this Report.
 
 Statutory Auditors
 
 The Comptroller & Auditor General of India has appointed M/s.  Ghoshal
 & Ghosal, Chartered Accountants, Kolkata as the Statutory Auditors of
 the Company for the year 2007-08.
 
 As authorised by the shareholders in the 28th Annual General Meeting,
 the Board of Directors of the Company has fixed the remuneration of the
 Statutory Auditors for the year 2007-08 at Rs. 2,00,000 (Rupees two
 lakh only) plus actual TA and Out of Pocket Expenses plus Service Tax.
 
 Cost Audit
 
 Due to non-operation of the PSF unit, the Company is seeking exemption
 from the Ministry of Corporate Affairs, Government of India from audit
 of the cost records of the PSF unit of the Company.  
 
 Pursuant to the provisions of the Slction 233B, of the Companies Act,
 1956 Central Government has directed the Company to conduct audit of
 the cost accounts maintained by the Company in respect of the petroleum
 industry i.e. Refinery unit of the Company for the year 2006-07 and
 also for every financial year thereafter continuously through an
 auditor with the qualifications prescribed in Section 233B (1) of the
 Companies Act, 1956.
 
 The Government of India has approved the appointment of M/ s. R J Goel
 & Co., Cost Accountants, New Delhi, as Cost Auditors of the Company to
 conduct audit of the cost accounts maintained by the Company in respect
 of the Petroleum Industry, i.e. Refinery unit for the year 2007-08. The
 remuneration of the Cost Auditors for the year 2007-08 has been fixed
 at Rs. 50,000/- (Rupees fifty thousand only) plus actual TA and Out of
 Pocket Expenses plus Service Tax.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 In terms of Section 217, sub-section (2AA) of the Companies Act, 1956,
 your Directors confirm the following:
 
 a) THAT in the preparation of the Annual Accounts, the applicable
 Accounting Standards had been followed;
 
 b) THAT the Directors had selected such accounting policies and applied
 consistently and made judgements and estimates that are reasonable &
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year 2007-08 and of the Profit
 & Loss of the Company for that period. The changes in the accounting
 policies along with the impact of such change on the Annual Accounts
 have been disclosed in the notes to the accounts.
 
 c) THAT the Directors had taken proper & sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities;
 
 d) THAT the Directors had prepared the Annual Accounts on a going
 concern basis.
 
 ACKNOWLEDGEMENT
 
 Your Directors place on record their appreciation of the continued
 guidance and support extended by the Ministry of Petroleum & Natural
 Gas and other Ministries and organizations of Government of India &
 Government of Assam, and the holding Company Indian Oil Corporation
 Limited in the functioning of the Company.
 
 Directors acknowledge with appreciation the loyalty and faith of valued
 customers in your Companys abilities to service them.
 
 Directors of your Company convey their gratitude to the Companys
 clients, suppliers, vendors and bankers for their continued support
 during the year.
 
 Your Directors thank all the shareholders and investors for the trust
 reposed by them in the Company.
 
 Your Directors also place on record their appreciation of the sincerity
 and devotion shown by the officers and staff of the Company in the
 discharge of their duties.
 
                           For & on behalf of the Board of Directors
                        BONGAIGAON REFINERY & PETROCHEMICALS LIMITED
 
                  (A K Sarmah)          (T V John)       (M Deva Sarma)
            Managing Director   Director (Finance)    Company Secretary
 
 Place   :   Delhi
 Date    :  July 30, 2008